As the steel industry navigates the complex currents of the global market, August 2023 emerges as a pivotal month, offering insights into the intricate dance of supply and demand. From China to Europe, Japan to America, and beyond, steel prices have undergone significant shifts, mirroring economic conditions, weather patterns, and manufacturing trends. This comprehensive overview delves into the recent fluctuations in Hot Rolled Coil (HRC) and rebar prices, unraveling the narratives behind each change and peering into the crystal ball of future market trajectories. Join us as we dissect the intricate web of factors shaping the steel landscape in this dynamic August update.
Let us support and share with you in this blog your business decision during this down-trend market around the world in Aug 2023.
China
On August 12th, the domestic HRC prices in China experienced a further decline, reaching Yuan 3,910/t ($543/t). This marked a decrease of Yuan 70/t (10/t) compared to the previous week. In a similar trend, export HRC prices also saw a slight decrease of $5/t, settling at $570/t FOB China port. Additionally, the domestic rebar prices dropped by Yuan 60/t ($8/t) to Yuan 3,630/t ($504/t) due to a combination of weak domestic demand and unfavorable weather conditions.
Japan
On August 9th, Japanese export scrap prices for H2 grade remained steady at Yen 48,500/t ($342/t), maintaining stability compared to the previous week. Similarly, domestic scrap prices also remained unchanged at Yen 49,500/t ($352/t). The estimate is that scrap prices will mostly remain stable in the coming months due to the recovery in crude steel production.
Europe
America
The price of US domestic HRC on August 10th saw a significant increase of $20/MT ($18 per short ton) after experiencing a major decline last week, attributed to certain manufacturers maintaining high prices. On the other hand, the domestic rebar price remained unchanged at $957/t ($870 per short ton) throughout the week, reflecting weakening demand.
In Mexico, steel scrap prices dropped by $6/t (100 pesos per ton) compared to the previous week, settling at $285/t (4,850 pesos per ton). Many people believe that this is the bottom price and anticipate that prices will stabilize or even slightly increase from next week onwards. Additionally, the domestic aluminum premium price decreased by $20/t, reaching $270/t.
Viet Nam
The imported HRC, originating from China, remains stable at $580/t throughout the week. Similarly, the domestic HRC, CIF HCM, is unchanged at $600/t compared to last week. However, there has been a increase in the domestic rebar price, rising by $40/ton to reach $626/t in just one week. Despite this, the demand for construction in the field continues to weaken.
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